This is a beginner’s Guide to use EtherDelta Exchange. EtherDelta is a Decentralised Exchange that can be used to buy or sell all the ERC20 (Ethereum Tokens). The guide covers different aspects of EtherDelta for the users who have never used it before. The guide also covers trading on EtherDelta.
EtherDelta is most amazing exchange to purchase Ethereum Tokens. EtherDelta has been around for quite a well. The exchange wasn’t much popular because of its complex user interface. I myself was quite reluctant to use it as I couldn’t understand it very well on the first try. After giving it a try, I found it absolutely beautiful. EtherDelta is the fastest exchange that I have used so far. There are many reasons making this one lovely choice. Before jumping up to the guide, we will take a look at some of the amazing features of EtherDelta.
Decentralised Exchange built on Ethereum Blockchain
EtherDelta Exchange is built on the Ethereum Blockchain. It’s a completely decentralised exchange. Unlike the centralised exchanges, the trade on EtherDelta is happening only between the seller and the buyer. The exchange uses Peer-to-Peer networking to carry out the decentralised trading between the users. At EtherDelta, the funds of users are being held by the EtherDelta Wallet which is only accessible by the Wallet owner. The Exchange developers cannot access this Wallet since it’s protected by a private key. The Decentralised Exchanges are not prone to hacks and downtimes. These are more secure and solid exchanges. Here are the advantages of these exchanges.
- No fear of hack.
- No downtime.
- Not using third parties to handle funds.
- No market manipulation.
All of the above features are there in a centralised exchange. Although EtherDelta is a complex exchange, it’s not risking the funds of users and not indulging in the trades either.
Why would you use EtherDelta when there are many other exchanges?
Since I mentioned above, this is an exchange built on Ethereum platform and it supports all ERC20 tokens. Right after an ICO of an ERC20 coin comes to an end, the coin, which is called an Ethereum Token, makes its way to EthereDelta. The coin is available at a very low buy rate initially. Users can grab the token before it makes its way to popular exchanges like Binance, Gate.io or Kucoin. As soon as the Token makes its way to the popular exchange, its price goes to the moon and results in giving you massive profits.
Another reason to use EtherDelta is how swift it performs the operations. It takes only a few seconds to complete a transaction to and from EtherDelta.
The Exchange has its own Wallet which is very secure. It has only one page. You are not going to jump here and there.
So you have stumbled upon EtherDelta for the very first time and you are finding navigating through it a herculean task? Well, you don’t have to worry anymore. To make things simple for everyone, I have tried making a detailed guide on how to use EtherDelta. It includes how to buy on EtherDelta, how to sell on Etherdelta and how to Trade on Etherdelta. This post will take you through a detailed guide to EtherDelta Exchange.
How to use EtherDelta: Guide To Trade On EtherDelta Exchange
Creating an Account on EtherDelta
- Open EtherDelta on your computer.
- In the top-right corner, you will find Select Account option.
- Click on Select Account > New Account.
- You will find a pop-up showing you your Public Address and Your Private Key.
- Save the Private Key somewhere you won’t lose from. It’s advisable to write it down on a piece of paper or print. Move on to the next step now.
EtherDelta Address and Private Key
- You got a Public Address and Private Key as a result of the process above.
- The Public Address is basically your ETH Wallet Address. This is the Address that you will use to deposit funds or coins in your EtherDelta Wallet. Save this address somewhere safe.
- Since ERC-20 Tokens use a same address and Ethereum, so this will remain your main Wallet Address.
- The Private Key you got is sort of a password for your EtherDelta account. You are never supposed to share this key with anyone or write it down somewhere online. Keep this key very, very safe and sound. This key will let you log in to your EtherDelta account once you log out.
Transferring ETH (Funds) to EtherDelta
- You got your EtherDelta Wallet Address above.
- You will copy this Wallet Address and give it at the exchange or wallet for transferring ETH to your EtherDelta account.
- Here is an example of transferring funds from MyEtherWallet to EtherDelta. I’m using my EtherDelta Public Address to send funds to the account.
- Once the funds have been successfully transferred, they will appear under Balance > Wallet on the left side of the EtherDelta homepage.
Depositing Funds from EtherDelta Wallet to EtherDelta Smart Contract
- Now that you have got funds in EtherDelta Wallet, it’s time to move them to EtherDelta Smart Contract.
- Transferring funds from EtherDelta Wallet to EtherDelta Smart Contract is the necessary step in order to purchase ERC20 tokens from the Exchange. Without transfer, you will not be able to perform the transaction.
- Enter the amount of ETH you want to transfer from the Wallet to Smart Contract.
- While Transferring, make sure that you leave a very small amount of ETH i.e. 0.05. This amount will be used as Gas price. I will explain the purpose of Gas in a while. If you do not leave enough amount in the wallet, you will encounter an error. As you can see above that I have only 0.049 in my ETH wallet and I’m trying to transfer the entire amount, so I got the error. This means If I have 5 ETH, I can transfer only 4.95. I will drop 0.05 in the wallet.
- After entering the amount, click on the deposit button. Remember, if you want to transfer CRED or any other token, you will click the deposit button after entering its amount, if you want to transfer ETH, you will fill its form and only click its deposit button. In the screenshot above, I have tried to transfer ETH only.
- You will get the transaction ID to trace the transaction, the amount will reflect in your EtherDelta Smart Contract shortly.
What is Gas Price?
Well, Gas Price is kind of fuel for your transaction. The higher the Gas price is, the higher the transaction speed is. By default, EtherDelta has 4 gwei Gas Price. The Gas Price deducts your Ethereum. So, If you have a too high Gas Price, you can end up emptying your Ethereum Wallet as well. The Gas Price by default is low, but it’s not that low. For example, in my case, it’s around 70 USDs which is too high. You can set the Gas Price according to your choice.
To set the Gas Price, click on the Account button in the top-right corner > Gas Price and change its value.
In case you have no idea how to set Gas Price, you can check the Gas Price calculator here.
Understanding the Order Book
- Now you will find some options in the centre of the EtherDelta Screen.
- First of all, you need to select the Token you want to purchase.
- By default, you will find the PPT token.
- Click on the PPT token drop-down and select your desired token. For example, I have selected CRED (Verify) token here.
- Now you will find the Order Book and the New Order boxes right in the centre.
- The Order Book shows the buy and sell orders placed by users.
- The sell orders will be highlighted in red and buy orders in green.
- Buy orders: The tokens that someone wants to buy.
- Sell orders: The tokens that someone wants to send.
- The order is, the sell orders are sorted by low to high (upwards) and buy orders are sorted high to low (downwards).
- This means you can easily place a low buy order depending on who is offering the lowest price and easily place a high buy order by getting a buy price idea from the Order book.
- Buy price also means who is offering the highest amount to purchase a token. You can click a buy order to sell tokens if the price suits you.
Placing Buy Order on EtherDelta – How to Buy on EtherDelta
- So, now we want to place an order to buy some tokens.
- There are two methods we can buy tokens.
- We can click on the lowest sell order and buy the coins instantly.
- We can enter a custom price at what we want to buy tokens using the form below.
- Here is how to fill the form.
- CRED: Number of tokens that you want to buy.
- CRED/ETH: Price in ETH that you want to pay for the tokens. i.e. In the order, we can take a look at the sell and buy orders, getting an idea, we can enter a custom price in ETH.
- ETH: The amount of ETH you want to spend on tokens. When you will fill out the CRED and CRED/ETH values, the number of ETH will automatically pop-up.
- Expires: For how many blocks you want to keep this order alive.
Buying directly from the Order Book
- In the Order Book, you will find the orders highlighted in red. These are the sell orders placed by the users.
- You can see that all the users have a different amount of tokens to offer and their price varies.
- You can click on your desired sell order now to buy the tokens.
- Now let’s say, a seller is offering 1000 tokens and you want to buy only 300, you can just put the order of 300 tokens. EtherDelta will purchase 300 tokens out of 1000 and transfer to your wallet.
Note: We are using CRED here as an example only. Your token may differ.
Placing Sell Order on EtherDelta – How to Sell on EtherDelta
- Under the New Order form, you will find the Sell option as well.
- Click on the Sell option now.
- Now fill out the form just like you filled it for buying or you can understand how to fill it by looking at the description given above.
- Place the order once you have filled it.
- If you want to sell directly, you can click on the buy orders (highlighted in green) and sell them directly.
Right next to the order book, there is a price chart as well.
Withdrawing from EtherDelta Smart Contract to EtherDelta Ethereum Wallet
- On the left side, under the Balance tab, you can find Deposit, Withdraw and Transfer options.
- Now that we want to Withdraw, click on the Withdraw Tab.
- Withdraw here means you want to Withdraw funds from EtherDelta Smart Contract to EtherDelta Wallet.
- You will enter the amount or number of coins/tokens you want to transfer and then click Withdraw.
- The transaction will proceed and finish in a few seconds or minutes.
Withdrawing from EtherDelta Ethereum Wallet to your Ethereum Wallet
- Now we want to transfer the tokens/funds from EtherDelta Ethereum Wallet to our own Ethereum Wallet such as MyEtherWallet.
- Click on the Transfer tab under Balance.
- Enter the address of your MyEtherWallet.
- Enter the number of tokens in front of the token that you want to transfer.
- Click on Transfer now.
Below the Price Chart, you will find My Transaction menu. This is the menu that has your transaction and order history. You can click on the Trades button to view what trades you have performed. The Orders tab shows your in-process orders and the Funds tab shows the available funds in your account.
How to log in next time?
- You will simply open EtherDelta and click on the Select Account > Import Account.
- Enter your Private Key and your Public Address to log in.
- That’s all.
That’s all with the EtherDelta Exchange. I hope that I have laid out the entire concept of this exchange in a very understandable manner. If you have any questions, feel free to reach me out through the comments or you can write me an email as well. I will try my best to get back to you as soon as possible.
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